John Lewis to launch loyalty card with free tea and cake

LONDON

Shoppers pass in front of John Lewis department store in Oxford Street in central London, January 4, 2012.

Reuters/Finbarr O'Reilly

LONDON (Reuters) - John Lewis, Britain's biggest department store group, will this month launch a customer reward card, seeking to encourage loyalty and gather more data on its shoppers in exchange for benefits such as free tea and cake.

The 149-year-old firm, whose worker co-ownership business model has been lauded by Prime Minister David Cameron, has traditionally been seen as a bellwether retailer but has been outperforming the wider retail market for about three years.

Loyalty cards, pioneered by Tesco's Clubcard two decades ago, are widespread throughout Britain's retail sector as they allow store groups to garner information on shoppers' likes and dislikes.

But unlike schemes run by many other chains, the "my John Lewis" card will tailor rewards to customers' interests, rather than points-based discounts in store.

John Lewis has a longstanding price promise that it is "never knowingly undersold".

From October 30 customers will be able to use the cards in John Lewis's 39 UK shops and online.

Customer rewards will include free tea and cake in John Lewis's restaurants each month, entry into regular prize draws every time they shop, invitations to exclusive local events, previews and other personalised incentives.

"We consciously decided not to develop a scheme based on collecting points, and instead offer more immediate rewards, previews and events," said Chris Bates, head of customer marketing.